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Banking and Infrastructure in Developing Financial Services MarketsA few slides on recent challenges in a few developingma...
Distribution as a Customer Acquisition Tool        Banked Customers                           Time
Distribution : Banking and Banking Usage Trends   Alternative   Traditional                 Physical                      ...
Rabo Development   Rabobank Development is a    division of Rabobank    International, one of the world‟s    largest food...
Rabobank World-Wide                                                KeyRabobank Group                                      ...
Banking in Harsh Environments   Bringing compute resources and    solutions to banks in remote    locations with limited ...
Generating Successful Formulas                                Currently has /                                uses another ...
Zanaco  40+ years of success, growth   and stability, successful   expansions, privatisation and   IPO  450.000 customer...
Xapit Instant Banking   Mobile Banking: Launched in    late 2008, USSD mobile    banking      • 250.000+ customers to-dat...
FMB Fast Account   First Merchant Bank (Malawi)      • 19 branches, corporate and retail         banking, 600 employees, ...
Case Study: NMB Tanzania   NMB: National Microfinance    Bank Ltd.      • Also by-far the largest bank in         Tanzani...
NMB mobile – mobile banking   Dial *155*66# to access   Features:       •   Balance Inquiry       •   Mini-Statement    ...
BPR Rwanda  BPR (Banque Populaire du   Rwanda) is by far the largest   bank in Rwanda     • “Bank of the people” with roo...
BPR Mobile Banking   “Project Columbus”     • Automating all 191 branches in 14           months       • Mobile internet ...
BPR “Quickcash” ATMs   Quickcash and ATM Cards     • 100 BPR ATMs online in 2011 throughout           Rwanda (donated by ...
BPR Mobile Banking  Mobile Banking  1. Balance Inquiry  2. Mini-Statement  3. Money Transfer (BPR Accounts)  4. Prepaid Ai...
BPR Mobile Road Shows & Sign-up Success
BPR Mobile Road Shows & Sign-up Success
BPR: Simbuka  Creating awareness of   technology and it‟s benefits for   Rwandans  Automatically include new   technolog...
Challenges in Rwanda, Tanzania and Elsewhere   Utilities                               Costs     • high-quality power   ...
Thank You! Dan Armstrong, +31652085071         www.rabobank.nl dan.armstrong@takashimobile.com   www.rabobank.com
Banking and Infrastructure in Developing Financial Services Markets
Banking and Infrastructure in Developing Financial Services Markets
Banking and Infrastructure in Developing Financial Services Markets
Banking and Infrastructure in Developing Financial Services Markets
Banking and Infrastructure in Developing Financial Services Markets
Banking and Infrastructure in Developing Financial Services Markets
Banking and Infrastructure in Developing Financial Services Markets
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Banking and Infrastructure in Developing Financial Services Markets

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Presentation for Hanson Wade "TECHNOLOGY INNOVATION FOR BANKS IN GROWTH ECONOMIES" -- 30 November 2011, London, UK

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Banking and Infrastructure in Developing Financial Services Markets

  1. 1. Banking and Infrastructure in Developing Financial Services MarketsA few slides on recent challenges in a few developingmarkets, showcase of a few Rabo Development partnerbanks.Dan ArmstrongTakashi Mobile, 30 November 2011
  2. 2. Distribution as a Customer Acquisition Tool Banked Customers Time
  3. 3. Distribution : Banking and Banking Usage Trends Alternative Traditional Physical Virtual
  4. 4. Rabo Development  Rabobank Development is a division of Rabobank International, one of the world‟s largest food/agri-banks • Wholesale banking in 48 countries, 59.000 Rabobank employees • AAA status as a retail bank, but focused on rural/retail and agri-banking  Rabo Development partners/takes minority equity in banks in developing countries that match this historical profile and skillsets.  In addition to support in food/agri- and basic banking services, Rabo Development also supports partners with brick-and- mortar branch network strategies, channels/automation projects (mobile, ATM, internet), banking products, fraud and in- country personnel.
  5. 5. Rabobank World-Wide KeyRabobank Group Rabo Development 48 countries, 59.000 employees Rabo International – Retail & Wholesale  Partner Banks: Brazil, Paraguay, Zambia, Tanzania, Rwanda, Mozambique, China Robeco, Sarasin, Orbay, Obvion, Interpolis, Rabo International - Wholesale Lage Landen, Athlon , etc.  Projects: Egypt, Malaysia, Vietnam, RIAS & Rabo Development Kazakhstan, Pakistan, Ukraine, Malawi, etc. Main focus on food and agri-banking, cooperative banking, and retail Rabobank Foundation
  6. 6. Banking in Harsh Environments  Bringing compute resources and solutions to banks in remote locations with limited infrastructure is a major challenge: • Fixed line internet connectivity (fibre, WiMax) and, if available, huge cost • Mobile internet connectivity (GSM/HSDPA, GPRS/EDGE, WCDMA, etc.) • Power (lack of power at all, or lack of stable power and/or UPS) • Weather conditions (humidity, flooding, sun exposure, lack of closed buildings and server environments) • Environmental conditions (dust, exponentially higher maintenance cycles) • Security of computing platforms (theft, transport, as well as e.g. stolen cooper phone wire for other purposes like jewelry) • IT skills (system set-up, monitoring, maintenance, usage of computers) • Literacy
  7. 7. Generating Successful Formulas Currently has / uses another financial product Too poor Redistribution Zone Target / Does not have Excluded by design Addressable access to the Market product Excluded by default Development Zone Does not have / use a financial product Does not want the product Has access to the product, but does not use it Potential users Enablement Zone Based on: http://www.bankablefrontier.com/assets/pdfs/access-frontier-as-tool.pdf
  8. 8. Zanaco  40+ years of success, growth and stability, successful expansions, privatisation and IPO  450.000 customers, 1.200 employees, 50 branches  Year-on-year profitability, K3 bln in assets, mature risk management regime. Healthy account portfolio including: • Retail: account services, personal loans, e-banking, Xapit, remittances, cash services • Corporate: credit facilities, e-banking, cash services, treasury and investments, trade services  Transformation to modern banking tools: 100+ ATMs, internet banking, mobile banking
  9. 9. Xapit Instant Banking  Mobile Banking: Launched in late 2008, USSD mobile banking • 250.000+ customers to-date • 20+ bill payment partners, prepaid airtime, etc., 21 transactions per month  Light Account: Also, Xapit „account‟ = welcome pack + mobile banking + ATM card  DSA: Sign-up for an account *444# and get mobile banking and a VISA debit card in 5 minutes.  Agency Banking: 123 ZamPost agency locations  Truck Banking: Zanaco mobile banking vehicles
  10. 10. FMB Fast Account  First Merchant Bank (Malawi) • 19 branches, corporate and retail banking, 600 employees, growing strongly • 1/11 commercial banks in Malawi  FMB Mobile / FMB Fast Account • Launched summer of 2010, 50.000+ customers to-date • Successful to-date – packaging of ATM card, bank account and mobile banking functionality • *** Includes immediate (small) balance on customers’ account, facilitating usage of the new product
  11. 11. Case Study: NMB Tanzania  NMB: National Microfinance Bank Ltd. • Also by-far the largest bank in Tanzania • 1.9 mln customers: regular Tanzanians, all teachers, army, etc. • ATMs in place (400+), most customers have ATM cards • 150 connected branches (100%)  However, as a former government bank: • Must handle bill payments, salary dispersal and non-customer transactions • Major queue problems
  12. 12. NMB mobile – mobile banking  Dial *155*66# to access  Features: • Balance Inquiry • Mini-Statement NMB mobile 1. Balance Enquiry • Money transfers to any NMB account 2. Mini-Statement 3. Money Transfer • Tanesco Luku Prepaid Electricity Purchase 4. Prepaid Services 5. Other Services • Vodacom and ZAIN Prepaid Airtime Top-Up 6. Help • NMB Services like ATM card block, settings  No need to fill-in forms or visit an NMB branch to sign-up, simply dial *155*66*123#  NMB mobile: • Launched in August 2009 • 550.000+ active customers to-date • All mobile networks, 100% nation-wide coverage • SMS Alerts to 220.000 customers monthly
  13. 13. BPR Rwanda  BPR (Banque Populaire du Rwanda) is by far the largest bank in Rwanda • “Bank of the people” with roots in cooperative and food/agri-banking (>85% of Rwandans are farmers) • 1,3 mln accounts (8x larger than the second largest bank)  In 2011, 47/191 BPR branch banks were automated: • Around 150 locations use paper-and- pencil ledgers • Staff may have no previous experience with computers • Fraud and information integrity are problems. • Customers can only bank at one bank location.
  14. 14. BPR Mobile Banking  “Project Columbus” • Automating all 191 branches in 14 months • Mobile internet (incl. USB modems, laptops) • Data migration, training of staff and customers, card distribution  New BPR E-Channels • BPR Mobile Banking (launched 09/2010, 110.000+ customers to-date) • BPR SMS Alerts • BPR ATM Cards • BPR QuickCash ATMs • BPR Call Centre
  15. 15. BPR “Quickcash” ATMs  Quickcash and ATM Cards • 100 BPR ATMs online in 2011 throughout Rwanda (donated by local Rabobanks) • Increased ATM usage through new marketing and promotions, usability campaigns and POS roll-out  New E-Banking Call Centre • BPR call centre successful operating, incl. ACD/call queue system • Inbound and outbound calling to improve usage, sign-ups and customer satisfaction • 650-1.000 calls per day, service level is 85%+
  16. 16. BPR Mobile Banking Mobile Banking 1. Balance Inquiry 2. Mini-Statement 3. Money Transfer (BPR Accounts) 4. Prepaid Airtime • MTN • Tigo (pending) 5. Bill Payments • RECO Prepaid Electricity • StarTimes Africa TV • DStv • MTN Postpaid Bill • Tigo Postpaid Bill (pending) 6. Bank Services • Change BPR Mobile Banking PIN • Change Language • Order Cheque Book 7. Help
  17. 17. BPR Mobile Road Shows & Sign-up Success
  18. 18. BPR Mobile Road Shows & Sign-up Success
  19. 19. BPR: Simbuka  Creating awareness of technology and it‟s benefits for Rwandans  Automatically include new technologies in new account packages.  Bring older (loyal) customers along with the launch of new services.
  20. 20. Challenges in Rwanda, Tanzania and Elsewhere  Utilities  Costs • high-quality power • connectivity (VSAT, 2G/3G, land • paved roads lines) • generator electricity only option in  Environmental conditions some remote locations (costly) • heat • high-quality solar still expensive • humidity • but GPRS is being widely available • dirt and can be a cheap and effective solution – both for connectivity and  Knowledge for electricity • project management  Cultural Acceptance • branches as ambassadors • technology acceptance • trained technicians • trust • maintenance and support personnel • usability  Equipment • PIN/2FA • spare parts • local hardware/software licenses
  21. 21. Thank You! Dan Armstrong, +31652085071 www.rabobank.nl dan.armstrong@takashimobile.com www.rabobank.com

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